Kongsberg Buys 49.9% Share of Patria
(Source: Finnish Broadcasting News, YLE; posted March 17, 2016)
The Finnish state has agreed to sell 49.9 percent of shares in its defence equipment firm Patria to Norwegian defence company Kongsberg Gruppen for 272 million euros in cash. Finland will retain its remaining 50.1 percent stake in the company.
Finnish Prime Minister Juha Sipilä said on Thursday that the sale of just under half of the state-owned defence company Patria was a good step in its business development.
"We are very pleased with Kongsberg's commitment to Patria," Sipilä said. "[Kongsberg] is a financially-strong, listed firm which is half-owned by the Norwegian state."
Sipilä said that the sale would also improve Patria's position in international markets.
Finland bought the French firm Airbus' shares of Patria about a year ago and has been looking for a new minority shareholder since.
Kongsberg: Patria to be "leading defence supplier in Nordics"
In a press release issued Thursday, Kongsberg said "Patria is Finland’s leading defence supplier and owns 50 percent of the shares in the Norwegian company Nammo. The partnership will be a leading defense supplier in the Nordics, and a considerable supplier on the European defence market, with total gross revenues of [1.42 billion euros] in 2015."
Kongsberg's CEO Walter Qvam said that the partnership of Kongsberg, Patria and Nammo was a proactive step.
"We’re taking a proactive step to meet the ongoing consolidation in the defence industry. This transaction entails a significant strengthening of our Nordic and international position, it provides strengthened profitability and growth opportunities, and is an important step in the strategy for our defence businesses," Qvam said.
Patria has around 2,800 employees and revenues of some 428 million euros in 2015.
According to Kongsberg, following approval from regulation authorities, completion of the deal is expected to take place in the second quarter of 2016.
(EDITOR’S NOTE: Patria and Kongsberg are proof that European state-owned defense companies can be both profitable and competitive in high-tech markets.
While this may be mainly due to Nordic governance principles which may not easily be duplicated elsewhere, it does give a moment of pause when contemplating the headlong rush, especially in Western Europe, to privatize state-owned defense companies in the name of competitiveness and profitability.
In this respect, it is worth noting that both Kongsberg and Patria successfully operate in some of the most competitive international market segments (air-launched and ground-launched missiles, remotely-operated weapon stations, wheeled armored vehicles, training services, and more) so their success cannot be shrugged off as being due to their operating in niche markets.)
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Kongsberg Buys 49.9 % of Patria Creating A Leading Nordic Defence PartnershipFinnish Prime Minister Juha Sipilä said on Thursday that the sale of just under half of the state-owned defence company Patria was a good step in its business development.
"We are very pleased with Kongsberg's commitment to Patria," Sipilä said. "[Kongsberg] is a financially-strong, listed firm which is half-owned by the Norwegian state."
Sipilä said that the sale would also improve Patria's position in international markets.
Finland bought the French firm Airbus' shares of Patria about a year ago and has been looking for a new minority shareholder since.
Kongsberg: Patria to be "leading defence supplier in Nordics"
In a press release issued Thursday, Kongsberg said "Patria is Finland’s leading defence supplier and owns 50 percent of the shares in the Norwegian company Nammo. The partnership will be a leading defense supplier in the Nordics, and a considerable supplier on the European defence market, with total gross revenues of [1.42 billion euros] in 2015."
Kongsberg's CEO Walter Qvam said that the partnership of Kongsberg, Patria and Nammo was a proactive step.
"We’re taking a proactive step to meet the ongoing consolidation in the defence industry. This transaction entails a significant strengthening of our Nordic and international position, it provides strengthened profitability and growth opportunities, and is an important step in the strategy for our defence businesses," Qvam said.
Patria has around 2,800 employees and revenues of some 428 million euros in 2015.
According to Kongsberg, following approval from regulation authorities, completion of the deal is expected to take place in the second quarter of 2016.
(EDITOR’S NOTE: Patria and Kongsberg are proof that European state-owned defense companies can be both profitable and competitive in high-tech markets.
While this may be mainly due to Nordic governance principles which may not easily be duplicated elsewhere, it does give a moment of pause when contemplating the headlong rush, especially in Western Europe, to privatize state-owned defense companies in the name of competitiveness and profitability.
In this respect, it is worth noting that both Kongsberg and Patria successfully operate in some of the most competitive international market segments (air-launched and ground-launched missiles, remotely-operated weapon stations, wheeled armored vehicles, training services, and more) so their success cannot be shrugged off as being due to their operating in niche markets.)
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(Source: Kongsberg Gruppen; issued March 17, 2016)
Today, Kongsberg has entered into an agreement with the Finnish state for the purchase of 49.9 % of the shares in Patria for EUR 272 million. Patria is Finland’s leading defence supplier and owns 50 % of the shares in the Norwegian company Nammo. The partnership will be a leading defence supplier in the Nordics, and a considerable supplier on the European defence market, with total gross revenues of NOK 13.4 billion in 2015.
“By forming this industry partnership consisting of Kongsberg, Patria and Nammo, we’re taking a proactive step to meet the ongoing consolidation in the defence industry. This transaction entails a significant strengthening of our Nordic and international position, it provides strengthened profitability and growth opportunities, and is an important step in the strategy for our defence businesses,” says Walter Qvam, CEO of Kongsberg.
Patria has approximately 2,800 employees and had revenues of EUR 428 million (NOK 3.8 billion) in 2015. The company is Finland’s leading defence supplier, and has a broad and modern product portfolio.
The Norwegian state and Patria each holds a 50 % share in Nammo. Nammo has approximately 2,200 employees and had revenues of NOK 3.8 billion in 2015. The company develops and produces high technology products within ammunition and rocket engines for defence and civilian applications.
“As a partnership, Kongsberg, Patria and Nammo hold both complementary and world leading products as well as key geographic areas that strengthen each other. This, combined with Patria’s strong position in Finland and Kongsberg’s strong global alliances and position in Norway, makes us significantly stronger together in a growing global defence market,” says Qvam.
“This partnership will be a larger and stronger supplier to the Norwegian and Finnish armed forces with more than 7,000 employees and total gross revenues of 13.4 billion Norwegian kroner. We have a close cooperation today, including on air defence and missiles, and this cooperation will be strengthened further. Significant opportunities within other areas, such as maintenance and aviation, will also emerge,” says Qvam.
The completion of the transaction is expected in the second quarter of 2016, and is subject to normal closing conditions e.g. approval from relevant authorities. The purchase price plus settlement of interest and taxes at closing will be settled in cash, and financed by a bridge facility in DNB.
Click here for the full presentation (32 PDF pages)
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Norwegian Kongsberg to Acquire A Minority Stake of 49.9% In Patria“By forming this industry partnership consisting of Kongsberg, Patria and Nammo, we’re taking a proactive step to meet the ongoing consolidation in the defence industry. This transaction entails a significant strengthening of our Nordic and international position, it provides strengthened profitability and growth opportunities, and is an important step in the strategy for our defence businesses,” says Walter Qvam, CEO of Kongsberg.
Patria has approximately 2,800 employees and had revenues of EUR 428 million (NOK 3.8 billion) in 2015. The company is Finland’s leading defence supplier, and has a broad and modern product portfolio.
The Norwegian state and Patria each holds a 50 % share in Nammo. Nammo has approximately 2,200 employees and had revenues of NOK 3.8 billion in 2015. The company develops and produces high technology products within ammunition and rocket engines for defence and civilian applications.
“As a partnership, Kongsberg, Patria and Nammo hold both complementary and world leading products as well as key geographic areas that strengthen each other. This, combined with Patria’s strong position in Finland and Kongsberg’s strong global alliances and position in Norway, makes us significantly stronger together in a growing global defence market,” says Qvam.
“This partnership will be a larger and stronger supplier to the Norwegian and Finnish armed forces with more than 7,000 employees and total gross revenues of 13.4 billion Norwegian kroner. We have a close cooperation today, including on air defence and missiles, and this cooperation will be strengthened further. Significant opportunities within other areas, such as maintenance and aviation, will also emerge,” says Qvam.
The completion of the transaction is expected in the second quarter of 2016, and is subject to normal closing conditions e.g. approval from relevant authorities. The purchase price plus settlement of interest and taxes at closing will be settled in cash, and financed by a bridge facility in DNB.
Click here for the full presentation (32 PDF pages)
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(Source: Patria; issued March 17, 2016)
The Ownership Steering Department in the Prime Minister’s Office has today released information about Patria’s new minority owner and ownership structure.
The State of Finland is to sell 49.9 percent of the defence company Patria Oyj to Kongsberg Defence & Aerospace AS. The total value of the transaction is some EUR 270 million. The transaction is estimated to be closed during the second quarter of the year. After that the State of Finland owns 50.1 percent of Patria Oyj.
Kongsberg, listed in the Oslo Stock Exchange, is more than 200 years old company, the State of Norway as the main stakeholder with a bit more than 50 percent ownership. Kongsberg has four Business Areas: Maritime, Defence Systems, Protech Systems and Oil & Gas. The Group employs some 7 700 persons and operates in more than 25 countries. Kongsberg’s turnover in 2015 was some NOK 17 billion (about EUR 1.8 billion).
“We at Patria are very pleased with the new minority owner and strategic partner. This is opening new opportunities for the development of our operations and surely for its part also affecting the future strategic choices. Additionally, it will strengthen Patria’s position as a significant player in the Nordic and the leading defence company in Finland. Patria will also in the future be an essential part of the Finnish defence industry and security of supply,” says Heikki Allonen, President and CEO of Patria.
Patria, Kongsberg and the Norwegian Nammo, which is producing ammunition and rocket motors and equally owned by Patria and the State of Norway, will together form a leading Nordic entity in its field. The transaction will support Patria’s operations in the international market and open opportunities especially in maintenance business, systems deliveries and production of aerospace components.
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The State of Finland is to sell 49.9 percent of the defence company Patria Oyj to Kongsberg Defence & Aerospace AS. The total value of the transaction is some EUR 270 million. The transaction is estimated to be closed during the second quarter of the year. After that the State of Finland owns 50.1 percent of Patria Oyj.
Kongsberg, listed in the Oslo Stock Exchange, is more than 200 years old company, the State of Norway as the main stakeholder with a bit more than 50 percent ownership. Kongsberg has four Business Areas: Maritime, Defence Systems, Protech Systems and Oil & Gas. The Group employs some 7 700 persons and operates in more than 25 countries. Kongsberg’s turnover in 2015 was some NOK 17 billion (about EUR 1.8 billion).
“We at Patria are very pleased with the new minority owner and strategic partner. This is opening new opportunities for the development of our operations and surely for its part also affecting the future strategic choices. Additionally, it will strengthen Patria’s position as a significant player in the Nordic and the leading defence company in Finland. Patria will also in the future be an essential part of the Finnish defence industry and security of supply,” says Heikki Allonen, President and CEO of Patria.
Patria, Kongsberg and the Norwegian Nammo, which is producing ammunition and rocket motors and equally owned by Patria and the State of Norway, will together form a leading Nordic entity in its field. The transaction will support Patria’s operations in the international market and open opportunities especially in maintenance business, systems deliveries and production of aerospace components.
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